Boeing starts workforce reduction, over 400 employees receive layoff notices
In a major job cut plan, Boeing has laid off over 400 employees, sending them layoff notices. The employees are members of the Society of Professional Engineering Employees in Aerospace (SPEEA). The move comes as the company struggles financially and attempts to recalibrate its workforce. It comes ahead of a larger job cut plan that could affect as many as 17,000 jobs in the company.
Layoff notices part of Boeing's recovery strategy
The layoff notices were sent last week to SPEEA members, The Seattle Times reported. These employees will remain on Boeing's payroll until mid-January 2025. The layoffs are part of a larger strategy announced in October, where Boeing revealed plans to cut its workforce by 10%, roughly 17,000 jobs in the coming months.
Boeing's CEO addresses workforce reduction
Boeing's CEO Kelly Ortberg informed employees about the job cuts. He said the company has to "reset its workforce levels to align with our financial reality." The SPEEA union confirmed 438 members have been affected by these cuts. The local chapter of this union represents 17,000 Boeing employees mostly based in Washington, and others in Oregon, California and Utah.
Breakdown of affected employees and severance details
The layoffs have affected a wide range of professionals in the SPEEA union. Of the 438 affected workers, 218 belong to the professional unit of engineers and scientists. The others are part of the technical unit which includes analysts, planners, technicians and skilled tradespeople. Boeing has offered career transition services and subsidized health care benefits for up to three months for eligible employees. Workers will also receive severance pay according to their years of service with the company.
Boeing's financial challenges and production issues
Boeing, based in Arlington, Virginia, has been struggling with financial and regulatory problems since an Alaska Airlines plane incident in January. After a panel fell off the aircraft's fuselage, production rates plummeted. The Federal Aviation Administration (FAA) restricted 737 MAX production to 38 planes a month, a target Boeing has yet to reach.
